Coal India, BCCL Share Price Rally: Stock Market Today Reacts to Coking Coal’s New ‘Critical Mineral’ Status

Market Performance: Coal India, BCCL Shares Surge

Stock Market Today saw strong buying interest in coal-linked stocks as Coal India and Bharat Coking Coal (BCCL) shares moved sharply higher on January 29. The rally came after a key policy move by the government, which pushed coking coal into the spotlight.

• BCCL Share Price jumped nearly 5% to around Rs 39 during afternoon trade
• Coal India shares gained close to 3%, touching Rs 456.95

The move stood out in a mixed market, with coal stocks clearly responding to a single trigger: policy clarity around coking coal.

Main News: Coking Coal Gets ‘Critical Mineral’ Tag

The Ministry of Coal has officially brought coking coal under the ‘Critical and Strategic Mineral’ category as per the Mines and Minerals (Development and Regulation) Act, 1957.

This decision followed recommendations from the High-Level Committee on Implementation of Viksit Bharat Goals (HLC-VB), along with policy inputs from NITI Aayog. The government highlighted the strategic role of coking coal in securing mineral supplies and supporting the domestic steel sector.

In simple terms, the move puts coking coal in a priority category—one that allows faster decisions and smoother execution.

Why This Matters for India’s Coal Ecosystem?

India holds around 37.37 billion tonnes of coking coal resources. A large portion is concentrated in Jharkhand, with additional reserves in:

• Madhya Pradesh
• West Bengal
• Chhattisgarh

Despite this domestic presence, dependence on imports remains high.

Key numbers shared by the ministry:

• Coking coal imports rose from 51.20 million tonnes (2020–21) to 57.58 million tonnes (2024–25)
• Around 95% of the steel sector’s coking coal requirement is met through imports

This heavy reliance has resulted in a significant foreign exchange outflow—one of the core concerns behind the policy change.

Policy Impact: Faster Clearances, Easier Mining

According to the government, classifying coking coal as a critical mineral brings several operational advantages:

• Faster approvals for exploration and mining
• Exemption from public consultation requirements
• Permission to use degraded forest land for compensatory afforestation
• Improved ease of doing business

These measures are aimed at accelerating exploration, including deep-seated coal deposits, while also opening up room for greater private participation.

Supply Chain & Steel Sector Implications

The amendment is expected to support multiple long-term objectives:

• Lower dependence on coking coal imports
• Stronger supply-chain resilience for the steel industry
• Alignment with the goals of the National Steel Policy

For the steel sector, which remains critically dependent on imported coking coal, this shift is seen as structural rather than short-term.

Economic Survey Highlights: Coal Still Central to India

The Economic Survey, tabled in Parliament on the same day, reinforced coal’s continued relevance to India’s economy.

Key takeaways from the survey:

• India has the fifth-largest coal reserves globally
• India is the second-largest coal consumer
• Coal contributes 55% to the national energy mix
• Over 74% of total power generation is coal-based

In FY25, coal production reached a record 1,047.52 million tonnes (MT).

• This marked a 4.98% year-on-year increase from 997.83 MT
• It was the highest coal production ever recorded in India

Imports Decline as Domestic Output Improves

Strong domestic production had a visible impact on imports:

• Coal imports declined 7.9%
• Imports fell from 264.53 MT in FY24 to 243.62 MT in FY25

The Economic Survey also noted that over the past decade, domestic coal production growth has consistently outpaced consumption growth. As a result, the production-to-consumption ratio has steadily improved.

Mission Coking Coal and Long-Term Direction

The survey also reiterated that India’s steel sector continues to face critical dependence on imported coking coal.

To address this, the Ministry of Coal launched Mission Coking Coal in 2022. The objective is clear:

• Increase domestic raw coking coal production to 140 MT by 2030

The recent policy move aligns closely with this mission.

Coal Stocks in Focus: Recent Share Price Trends

In stock-specific action:

• Coal India touched a fresh 52-week high of Rs 456.95
  • Stock up 8% in one week
  • Gained 14% over the past month
• Bharat Coking Coal (BCCL)
  • Listed earlier this month
  • Debuted with a 96% premium after a 147-times subscription
  • Listed at Rs 45 on the NSE
  • Stock has declined around 13% since listing

Despite post-listing volatility, BCCL Share Price saw renewed interest following the policy announcement.

Summary: What Drove the Rally in Stock Market Today?

Coal India and BCCL shares moved higher as the market reacted to a clear policy signal from the government. By designating coking coal as a critical mineral, the focus has shifted toward domestic security, import reduction, and long-term supply stability.

The announcement, backed by hard data from the Economic Survey, reinforced coal’s ongoing role in India’s energy and steel ecosystem—giving coal stocks fresh momentum in Stock Market Today.

Source: Moneycontrol